Housing in Arizona – State Policy Review

Since 2023 the Legislature has passed a dozen measures addressing housing in Arizona.

  • Administrative approvals (Laws 2023, Ch. 1) – Authorized general law cities to administratively approve various steps in the housing process, expediting approval timelines.
  • Adaptive Reuse Policy for Cities (Laws 2024, Ch. 141) – Mandated an commercial conversion policy in Arizona’s largest cities and towns.
  • Accessory Dwelling Unit (ADU) Policy for Cities (Laws 2024, Ch. 196) – Mandated an ADU policy for cities and towns 75,000 or larger.
  • Middle housing Policy for Cities (Laws 2024, Ch. 197) – Mandated a policy for cities and towns 75,000 or larger to foster multi-plex and townhome development.
  • Zoning Shot-Clock for Cities (Laws 2024, Ch. 172) – Requires cities and towns to approve to an administratively complete zoning application within 180 days.
  • Mandatory Administrative Approvals (Laws 2025, Ch. 31) Requires cities and towns to use administrative staff to review design review plans.
  • Accessory Dwelling Unit (ADU) Policy for Counties (Laws 2025, Ch. 217) – Mandated an ADU policy for counties.
  • 3rd-Party Permitting (Laws 2025, Ch. 187) – Requires all major cities and towns to allow an applicant to use a third-party reviewer if the municipality takes more than 15 working days to react to the applicant.
  • Pre-Approved Designs (Laws 2025, Ch. 259) – Requires municipalities to establish a preapproved housing design plan program. These designs are exempt from public hearing requirements.
  • Changes to Impact Fees and Utility Charges (Laws 2026, Ch. 121) – Adds various limitations and prohibitions on how cities and towns impose fees on ADUs and single-family homes, and utility rates, charges, and fees for various municipal utilities.
  • SAIDs (Laws 2026, Ch. 123) – Creates a new state-level district that enables private developer to finance infrastructure over time.
  • Permit delays (Laws 2026, Ch. 71) – Prohibits a city or town from overly delaying the approval or response on a residential construction application.

Housing Shortage:

The original figure of 270,000 that spurred the SB 1162 bill to be passed, resulted from a report published in 2022 by the Arizona Department of Housing based on a 2020 Housing Phoenix study. After municipal reporting in compliance with SB 1162, that figure was greatly reduced down to 126,800 units in 2024 and the Common Sense Institute in a report on Arizona Housing Affordability in Arizona 2026 1st Biannual Update reports that figure is down to 56,000 units.

2020 – 270,000 units was based on a report published in 2022 by Arizona Dept. of Housing based on 2020 HOUSING PHOENIX study.

2024 – 126,800 units Arth Analytics pursuant to municipal compliance with SB 1162

2026 – 56,000 units Common Sense Institute Arizona Housing Affordability in Arizona 2026 1st Biannual Update